Preheat the oven to 375 degrees . In a heavy ovenproof pot, heat 2 tablespoons olive oil over medium heat. Add the shallot and cook until translucent and softened, about 4 minutes. Add the garlic and rice; season with salt and pepper. Cook, stirring, until the rice is toasted, about 3 minutes. Stir in the broth and 1-1/4 cups water. Transfer immediately to the oven and bake for 25 minutes.
Meanwhile, using a food processor, finely chop the parsley, 1/2 cup Parmesan, the pine nuts and the lemon peel. Add the remaining 2 tablespoons olive oil and process until blended. Set the pesto aside.
Remove the risotto from the oven and stir in the asparagus and the remaining 1/2 cup Parmesan. Continue to bake until the rice is tender, about 5 minutes. Stir in the reserved pesto and serve with extra Parmesan.